Insight Report 13 minutes PremiumTakeaways from the 2017 Macy’s Investor Meeting Coresight Research June 7, 2017 Executive SummaryAt the 2017 Macy’s Investor Meeting, management outlined what it refers to as its “North Star strategy,” which consists of five points that will allow the company to emerge a winner and drive future growth. The company describes the five points as 1) From familiar to favorite, 2) It must be Macy’s, 3) Every experience matters, 4) Funding our future and 5) What’s new, what’s next. Management said that 9% of customers visit Macy’s 18 times per year and spend $2,010 per year, accounting for 86% of the company’s sales. The goal is to migrate customers from the second and third tiers to higher tiers by getting to know them using data and analytics and giving them what they want how they want it. Exclusive product at Macy’s comprises private brands, big brands and capsules. The goal is for exclusives to represent 40% of sales by 2020, up from 29% currently. Buy online, pickup in store has proven a successful combination of e-commerce and brick-and-mortar, and such transactions are the company’s most profitable. The service improves margins by cutting out shipping costs and increases sales, as customers tend to shop more when they get to the store to pick up their online orders. The company maintained its adjusted EPS guidance of $3.37–$3.62 for the year. Management noted that there could be risks to the gross margin rate, but that they should be offset by additional expense reduction opportunities (excluding asset gains) and asset sales. Macy’s has a substantial real estate portfolio encompassing more than 130 million square feet. The company’s real estate options include store closures, downsizing the box (reducing the footprint or selling off floors), development on excess land and “wrap and hug” development, such as developing restaurants attached to stores. Already a subscriber? Log in You are currently viewing a preview of this report. Please select an access option to view the full report. Hide Options - Show Options + Get unlimited access to all our research with one of our subscription plans. View Subscription Plans or Contact us to purchase this report. Contact us ✕ This document was generated for Other research you may be interested in: Consumer Financial Health Stays Strong: US Consumer Survey Insights 2023, Week 38Store Openings and Closures 2023 Review and 2024 Outlook: US and UK Store Tracker Extra—InfographicIncreased Avoidance of Public Places: China Consumer Survey InsightsWeekly US and UK Store Openings and Closures Tracker 2024, Week 27: Walgreens Boots Alliance and Bob’s Stores To Close Stores in the US